Microsoft has been jumping through quite a few hoops to finalise its acquisition of Activision Blizzard. Now, the Xbox creator and metaverse contender is facing yet another obstacle. On Dec 20, a group of gamers filed a federal antitrust lawsuit against Microsoft to thwart the company’s plan to absorb the Call of Duty developer. The filing came just weeks after the United States Federal Trade Commission’s own filing to stop the merger.
Microsoft Defends Activision Acquisition
“This deal will expand competition and create more opportunities for gamers and game developers as we seek to bring more games to more people,” a Microsoft spokesperson said in a recent statement.
According to the filings against the company, acquiring Activision Blizzard will give Microsoft a monopoly over the gaming industry. With such an advantage, Microsoft could run its competition out of business and increase prices.
The complaint states, “Microsoft already controls one of the industry’s most popular and largest video game ecosystems. The proposed acquisition would give Microsoft an unrivalled position in the gaming industry, leaving it with the greatest number of must-have games and iconic franchises.”
Additionally, the filing states that with a monopoly in the PC and mobile gaming industries, the company could control the supply of games. This in turn could lead to fewer game choices for consumers. Both Microsoft and Activision Blizzard are the evolution of past company mergers. In addition, according to the suit, the two companies are some of the only ones currently seeking employees with “specialised talent” to develop video games. Microsoft is already attempting to appease EU regulators to solidify the merger. Now, with filings against the acquisition from gamers and the FTC, Microsoft is fighting an uphill battle. And perhaps a losing one at that.
2023: A Great Year for Games
Besides having difficulty securing its acquisition of Activision Blizzard, Microsoft also faced a decline in Xbox revenue this year. The 7 percent year-on-year dip in earnings is greatly due to there being few blockbuster titles this year. However, big gaming titles like the Resident Evil 4 Remake, Hogwarts Legacy and Atomic Heart all launch this year.
Jack Brassell is a freelance journalist and aspiring novelist. Jack is a self-proclaimed nerd with a lifelong passion for storytelling. As an author, Jack writes mostly horror and young adult fantasy. Also an avid gamer, she works as the lead news editor at Hardcore Droid. When she isn't writing or playing games, she can often be found binge-watching Parks & Rec or The Office, proudly considering herself to be a cross between Leslie Knope and Pam Beasley.
